We engage to improve transparency of information, accountability of boards and to preserve and encourage the creation of sustainable value. Our engagements are categorised into four sections: strategic, collaborative, theme-based or proxy voting.
1. Strategic engagement
Ninety One will make a conscious decision about whether a strategic engagement is appropriate for an investment strategy.
Where engaging is appropriate, Ninety One will make an assessment of the issues to ensure that they are relevant, value accretive and that there are concrete and measurable actions that can be taken.
Specific engagement will then take place between the analyst, portfolio manager or engagement team and the chairman, directors or other officers of the company.
2. Collaborative engagement
Ninety One may work with other shareholders from time to time to promote good governance and to prevent any destruction in value. Discussions that take place will relate to specific voting actions, and will at no stage seek managerial control or control over the assets of the company. Rather, Ninety One will collaborate on a range of different issues such as the introduction of new skills or diversity to a board of directors, the amendment of a governance deficiency and the prevention of value destruction.
3. Theme-based engagement
Subject to the interests of our clients, Ninety One may seek to become involved in professional, national and international initiatives that seek to enhance governance, corporate citizenship and disclosure practices.
4. Proxy voting engagement
Ninety One regards the shareholder vote as a fundamental part of preserving and growing the real purchasing power of our clients’ assets. The manner in which we vote is integral to our stewardship policy. Engagement to reinforce our voting usually takes place with the company secretary. The second quarter of the year is allocated predominantly to proxy voting engagements, while other engagements take place throughout the year, led by the ESG team and members of the investment team as required. All engagements are supported by appropriate analysts, portfolio managers and the ESG team